How to Choose a Business Partner That Doesn’t Suck – Part 1
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2 Partner or Not 2 Partner? (Sorry, Will.)
Does it take 2 (or more) to do the business tango? When is it better to partner up and when is it better to fly solo? If you do decide to buddy up, what are some of the risks and reasons for doing so? And, given the financial and emotional scars that happen when a business partnership goes wrong, how on earth do you choose a business partner that doesn’t totally suck?
I have a fair amount of experience is this partnership thing. I’ll dig into how that all went down when it’s relevant. But, for now, consider me experienced enough to be able to point out the quicksand pockets for your consideration and avoidance.
There are a lot of great reasons to go into business with someone else. But, it does add a whole other level of complexity to an already risky proposition. Before you making that leap, carefully consider your reasons for partnering, analyze the likelihood that this partnership will work, and take a good, hard look at yourself.
Picking a great partner or partners who provide skills, strengths, or scratch in areas or ways that you do not can have a major positive impact on your business’s success. A strong business partner may:
- Be sounding board for your crazy ideas (though I recommend an advisory board as well)
- Add financial strength to your balance sheet to help get the business off the ground quicker. Someone has to foot the bill for the office espresso machine.
- Contribute breakthrough ideas of their own, after listening to your ravings
- Be an additional source of contacts. If you know 50 people who know 50 others, how many more people might you connect with through 1-2 other partners?
- Add complementary skills - aka Dr Jekyll to your Mr Hyde. Or, at least handle sales if you’re the stapler guy in “Office Space”.
- Add accountability and motivation, assuming he or she is that type of person, and if they aren’t, run away.
- Raise the perception of your professionalism. It’s always nice to have people on your side of the conference table.
- Actually do part of the work! Novel concept, I know.
Lots of good reasons to pair up. Check. More on how to pick a good partner in our next installments. But, before we get into that, write this on a sticky note and put it on your bathroom mirror:
This is a two-way street.
If your communication, personal skills, and work ethic aren’t up to snuff, if your own integrity is .. shall we say…subject to interpretation, there is no list in the world that can keep you out of hot water. That last list is not multiple choice, by the way. It’s inclusive.
Work on your own s**t before you bring it to someone else’s door. Yes, the criteria I’m about to give you is designed to protect you, my reader, but you have every responsibility to make sure that you yourself are not the agent of financial doom for someone else and their family.
What one thing would you change to make yourself a better business partner?
I have to admit, the first thing I thought when I read your point about accountability and motivation was, “Crap, I’d make a lousy partner!” I’m not good at follow-through, so that would be the fist thing I’d change (well, am working on changing right now… God bless to-do lists).
August 15th, 2007 at 10:48 amThat’s so true. I’m in a game startup right now with 3 other people. The guy that started this with me is my best friend and we’re totally opposite in most ways. Still, we’re good in different areas, show each other where we’re wrong, makes a great brain storming partner and brought on board the two programmers that are working together with us.
I think I’ve seen the benefits of most of your points, including the additional financial resources we’ll need to launch our project.
Great post, and something that should be read by those that are looking for a partner.
August 22nd, 2007 at 3:42 pmSarah! Good to see you here. Don’t even begin to sell yourself short as a potential partner. Everyone’s good at different things and part of the point is to be honest with ourselves about our strengths and weaknesses, as well as those of potential partners — i.e. no rose-colored glasses syndrome that is so typical of startup scenarios.
Alexandru, it’s great to have you come by. I’m a fan of your blog and your positive feedback is appreciated. I’m still working on the rest of this series, so I’ll be sure to let you know when it’s ready. It sounds like it could be timely to your new efforts!
August 23rd, 2007 at 1:02 pm